Aviation Finance and Insurance

Paper Code: 
DBTM 506 A
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

  1. Understand the role of aviation finance and insurance related measures.

Course Outcomes (COs):

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Paper Code

Paper Title

DBTM 506 A

Aviation Finance and Insurance

 

 

CO 189 Analyze the Airline finance

CO 190 Describe the Airline Valuations & Source of finance.

CO 191 Analyze the Aircraft Leasing & Finance procedures.

CO 192 Describe the Principles of Insurance & Risk Management.

CO 193 Describe the concept of Aviation Insurance.

 

Approach in teaching:

Interactive Hours, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching

 

Learning activities for the students:

Self-learning assignments, Effective questions, Simulation, Seminar presentation, Giving tasks.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

12.00
Unit I: 

Airline finance – Introduction
• Airline Finance
• Need & Importance – World Airline financial results
• Factors affecting financial results – Asset Utilization – Key Financial issues
• Airline financial ratio – Performance Earnings Ratio – Risk solvency ratio
• Liquidity Ratio – Stock Market Ratios – inter – Airline comparison of financial ratio

12.00
Unit II: 

Airline Valuations & Source of finance
• The valuation of tangible and intangible assets – The valuation of the Airline as a whole
• Rating agencies – Sources of internal and external finance – Institutions involved in Airline Finance
• Term Loan payment, book profit and manufacturer‘s prepayment

12.00
Unit III: 

Aircraft Leasing & Finance
• Finance Lease – Meaning, Objectives, Different type of leasing, major differences between Wet, Sale and Operating lease.
• Securitization of Aircraft – Meaning, Purpose and advantages, Airline traffic and Financial forecasts
• Airline capital expenditure projections and airline financial requirement forecasts

12.00
Unit IV: 

Principles of Insurance & Risk Management
• History of Aviation insurance – Basic Principles of Insurance – Basic Terminologies in General Insurance.
• Insurers – Risk & Insurance – Risk Management

12.00
Unit V: 

Aviation Insurance
• Aircraft hull and liability insurance – Sample policy and endorsement – Airport premise liability and other aviation coverage.
• Underwriting and pricing aviation risk – Aviation business property insurance and transport insurance.

Academic Year: 
2023-2024
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